Wayne's Feed
Jun 11, 2013

Myanmar finally takes a seat at its own oil & gas feast

NAYPYITAW, Myanmar, June 12 (Reuters) – In a few months,
impoverished Myanmar plans to start pumping roughly $45 million
worth of oil and gas a day from the Bay of Bengal to China by
pipeline. The vital fuel for China’s growing economy will bypass
the Malacca Straits and U.S. ally Singapore.

It will mostly also bypass Myanmar.

Though rich in natural resources, Myanmar has little
capacity to use them for its own development. For decades, its
leaders valued gas for the hard currency it could earn rather
than the economic development it could fuel. Today, only one in
four of Myanmar’s citizens have electricity.

May 23, 2013

As yen tumbles, Japan’s gain isn’t South Korea’s pain

May 23 (Reuters) – South Korea’s economic problems aren’t
made in Japan.

That isn’t the way it looks in the two rival exporters’
stock markets. Investors convinced that Japan’s weakening yen
will help its companies claw global market-share back from
Korean competitors have bought almost $75 billion worth of
Japanese stocks so far this year. Part of that appears to have
come at the expense of South Korea, where foreign investors have
sold nearly $6 billion of shares.

Nov 29, 2012
via Breakingviews

Low valuations don’t make China stocks a bargain

By Wayne Arnold

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Conventional gauges of value make China’s stocks tempting, particularly amid signs growth may be picking back up. But even if the economic rebound lasts, stocks haven’t been great proxies for corporate growth. Even China bulls should be ursine on the country’s equities.

Nov 9, 2012
via Breakingviews

O-Burma trip rewards reformists for job half done

Photo

By Wayne Arnold 

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Barack Obama’s planned trip to Myanmar this month risks rewarding the country’s rulers for a job half-done. The visit would justifiably herald recent reforms and cultivate a key ally as U.S. foreign policy pivots to Asia. But it is sure to antagonize China’s new leaders and could reduce pressure on Myanmar to make the tougher changes it still needs.

Nov 6, 2012
via Breakingviews

QE-lenient world gives Vietnam financial pardon

Photo

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Wayne Arnold

Investors can’t stay mad at Vietnam. Even after a downgrade last month by rating agency Moody’s, they’re willing to lend Hanoi dollars for less. Rising exports have helped restore reserves and avert a potential balance of payments crisis, while top officials have apologised for economic mismanagement. In a world awash with cash, however, investors are all too eager to forgive and forget.

Oct 31, 2012
via Breakingviews

Europe, China holding back Asian export recovery

Photo

By Wayne Arnold

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Asia’s export engine could remain stuck in neutral as long as Europe and China are slowing. An uptick in September exports has buoyed hopes for a U.S.-led rebound in regional trade. But in the past decade, Asian economies have shifted focus to Europe and responded to China’s rise by supplying the manufacturing juggernaut. A U.S. upturn alone won’t be enough.

Oct 22, 2012
via Breakingviews

Japan exporters should fear slowdown, not boycott

Photo

By Wayne Arnold

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Squabbles over remote islands have sparked a Chinese backlash against Japanese brands. But China’s slowing economy is having an even bigger impact on Japan’s exports. And while China has toppled the U.S. as Japan’s biggest market, both nations face a common economic enemy in the form of plunging demand from Europe.

Oct 19, 2012
via Breakingviews

Indonesia’s Bob Marley economy’s gonna be alright

Photo

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Wayne Arnold

It sometimes seems like every little thing is conspiring against Indonesia’s economy: poor infrastructure, political corruption, regulatory caprice and bureaucratic inertia. Falling commodity prices threaten to reverse the spread of wealth to poorer parts of the archipelago. But Indonesia’s very immaturity gives it resilience to muddle through.

Oct 17, 2012
via Breakingviews

Corporate China beating banks at their own game

Photo

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Wayne Arnold

Corporate China appears to be beating the country’s lenders at their own game. Even as banks heap credit into China’s economy to keep its credit-fuelled growth from crashing, companies are handing out credit to their own customers. That may help keep the economy revving, but the risk is that past-due bills make it harder for companies to service mounting debt.

Oct 10, 2012
via Breakingviews

New recall narrows Toyota’s recovery window

Photo

By Wayne Arnold

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

It may take just 40 minutes to replace the gizmo responsible for Toyota’s latest embarrassment, but with 7.4 million cars to fix, that’s 565 years of mechanic time. Actually it is neither the first nor the most serious of Toyota’s recent difficulties. But the Japanese automaker’s problems are beginning to look unending.

    • About Wayne

      "Wayne Arnold is Breakingviews’ Hong Kong based Asia strategist, with 20 years of experience in the region. From 1999 to 2008, he served as the Southeast Asia business and finance correspondent for The New York Times and the International Herald Tribune. In 2008 he helped launch a new daily newspaper in Abu Dhabi, The National, where as its economics columnist, he chronicled Dubai’s financial meltdown. He was previously a columnist and reporter at the Wall Street Journal in Hong Kong and Bloomberg in Tokyo. His stories have spanned from Japan’s financial collapse in 1991 to the global economic crisis. ..."
    • Follow Wayne